Larsen & Toubro Ltd. Hits Intraday Low Amid Price Pressure on 24 Feb 2026

Intraday Price Movement and Market Context

On the trading day, L&T’s shares fell sharply, registering a day change of -3.13%, with the intraday low of Rs 4,266.8 marking a significant dip from its recent highs. This decline came despite the stock hitting a new 52-week and all-time high of Rs 4,440 earlier in the session, indicating a reversal in momentum. The stock’s performance lagged behind the broader construction sector, which itself declined by 2.01%, and the Sensex, which fell 1.35% to close at 82,172.39 points.

The Sensex opened 242.12 points lower and extended losses throughout the day, ending down 880.15 points. The index remains 4.85% below its 52-week high of 86,159.02 but is trading below its 50-day moving average, signalling some near-term pressure on market breadth. L&T’s sharper decline relative to the Sensex and its sector highlights the stock’s sensitivity to the prevailing market conditions.

Technical Indicators and Trend Analysis

From a technical standpoint, L&T’s share price remains above its 20-day, 50-day, 100-day, and 200-day moving averages, suggesting that the medium- to long-term trend remains intact. However, the stock is trading below its 5-day moving average, reflecting short-term weakness and a possible correction after two consecutive days of gains. This short-term pullback may be attributed to profit booking following the recent rally that saw the stock appreciate by 14.28% over the past month and 31.41% over the last year.

The intraday low of Rs 4,266.8 represents a 3.4% drop from the previous close, indicating that sellers dominated the session after the initial high. This price action suggests that immediate resistance was encountered near the Rs 4,440 level, prompting traders to reduce exposure amid broader market volatility.

Sector and Broader Market Pressures

The capital goods sector, to which L&T belongs, faced a decline of 2.01% on the day, reflecting a broader risk-off sentiment among investors. This sectoral weakness was compounded by the sharp fall in the Sensex, which weighed on large-cap stocks including L&T. The stock’s underperformance relative to the Sensex (-3.10% vs -1.35%) and the sector indicates that it was more vulnerable to the day’s selling pressure.

Despite the intraday weakness, L&T’s year-to-date performance remains positive at 4.82%, outperforming the Sensex which is down 3.58% over the same period. Over longer time horizons, the stock has demonstrated strong resilience and growth, with a three-year return of 100.58% and a five-year return of 180.67%, significantly outpacing the Sensex’s respective gains of 38.19% and 61.81%.

Mojo Score and Rating Update

Larsen & Toubro Ltd. holds a Mojo Score of 75.0, reflecting a favourable outlook based on a comprehensive assessment of fundamentals, technicals, and market sentiment. The company’s Mojo Grade was upgraded from Hold to Buy on 17 Feb 2026, signalling improved confidence in its medium-term prospects. The market cap grade remains at 1, indicating its status as a large-cap stock with significant market presence.

While today’s price action shows short-term pressure, the stock’s technical and fundamental metrics continue to support its standing within the construction sector. The recent upgrade and strong Mojo Score suggest that the current dip may be a temporary correction within a broader positive trend.

Summary of Performance Metrics

Examining L&T’s recent performance relative to the Sensex provides additional context to today’s decline. Over the past week, the stock has remained essentially flat with a 0.02% gain, outperforming the Sensex’s 1.53% loss. Over three months, L&T gained 6.65% while the Sensex declined 3.21%, and over one year, the stock’s 31.41% return far exceeded the Sensex’s 10.37%.

These figures underscore the stock’s relative strength despite the intraday setback. The current dip of 3.4% intraday should be viewed within the context of a broader uptrend that has seen L&T consistently outperform the benchmark indices over multiple time frames.

Market Sentiment and Immediate Pressures

Market sentiment on 24 Feb 2026 was subdued, with the Sensex’s sharp fall reflecting investor caution amid uncertain macroeconomic factors. The construction and capital goods sectors, sensitive to economic cycles and government spending, experienced notable selling pressure. L&T’s sharper decline relative to its peers suggests that profit-taking and short-term technical selling contributed to the price pressure.

The stock’s retreat from its 52-week high indicates that traders were quick to lock in gains after recent rallies. The fact that L&T remains above its longer-term moving averages suggests that this pullback is part of normal market fluctuations rather than a fundamental shift in outlook.

Conclusion

Larsen & Toubro Ltd. encountered significant intraday price pressure on 24 Feb 2026, touching a low of Rs 4,266.8 and closing down over 3%. This decline was driven by broader market weakness, sectoral underperformance, and short-term technical factors. Despite the setback, the stock’s medium- and long-term technical indicators remain positive, supported by a recent upgrade in its Mojo Grade and a strong Mojo Score of 75.0.

Investors observing today’s price action should consider the stock’s historical resilience and relative outperformance against the Sensex over multiple time frames. The current correction aligns with typical market behaviour following a strong rally and does not detract from the company’s established market position within the construction sector.

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